Airbnb, Booking.com, and VRBO (Expedia) have updated their agreements with Greece’s Independent Authority for Public Revenue (AADE) to enhance transparency and address tax evasion in the short-term rental market. The updated memoranda of understanding (MoUs) were signed during the 87th Thessaloniki International Fair (TIF) and signify a continued effort towards cooperation.
These developments follow the recent announcement by Greek Prime Minister Kyriakos Mitsotakis that income generated from Airbnb-style rentals will be subject to taxation starting in January 2024, applying to operators with three or more properties. Under the revised agreements, short-term rental (STR) platforms will:
- Include a syntax validation field in the Property Registration Numbers (PRNs) field.
- Provide the name and surname of the IBAN account holder to facilitate identification and auditing of property managers. This information will also include the total annual rentals (nights) per listing.
- Share data regarding property managers who fail to comply and correct their PRNs.
- Furnish relevant and requested data on a mandatory basis.
Furthermore, properties will be categorized as either STR (short-term rentals) or non-STR listings based on their commercial model.
Giorgos Pitsilis, the Governor of AADE, emphasized the importance of collaborative solutions with industry stakeholders to combat tax evasion. He noted that the updated MoUs strengthen their policy and have contributed to a ten-fold increase in declared income from STRs.
In 2021, these rental platforms committed to complying with Greek law by registering properties on AADE’s short-term rental registry. Airbnb had previously informed property owners in Greece renting out their properties for short-term stays that information from 2018-2019 would be shared with Greek tax authorities for taxation purposes.
